Around 5.6 million households in the United States are ‘unbanked’, according to recent research from the Federal Deposit Insurance Corporation.
Around 5.6 million households in the United States are ‘unbanked’, according to recent research from the Federal Deposit Insurance Corporation. As such, countless Americans lack a means to access traditional checking and savings accounts. Moreover, according to the same polling, around 14.2% of households are ‘underbanked’, and therefore reliant on alternative sources of finance, like short-term credit products.
This coincides with increasing awareness of cryptocurrencies among many adults in the United States (though ownership has declined since 2025). So, might these two trends feed into one another? Might those bank-free people find that they can get by using alternative, crypto-based sources of finance?
Providing Access Without a Traditional Bank Account
The first thing to be aware of is that cryptocurrency can provide a means of storing value, in the same way that you might store it in a traditional bank account. While the value of your coins might fluctuate significantly over time, the general trend over the last ten or so years has been resolutely upward.
Supporting Faster and More Accessible Transactions
When you bank in the traditional way, you’re reliant on traditional banking infrastructure. This contrasts markedly with the digital wallet, which can be far more powerful. A transaction might be performed in a matter of seconds, meaning that you’ll rarely spend days stressing over whether a payment will actually go through.
Expanding Access Points for Financial Participation
One of the systemic advantages of traditional banking is that it’s everywhere. But this is an advantage that’s being gradually eroded by an expansion in crypto-friendly real-world machinery. You might find that there’s now a Bitcoin ATM near you, offering convenient access to your money.
Creating Opportunities for Cross-Border Transfers
The established systems for cross-border transactions are quite laborious and difficult for unbanked people to deal with. How are you going to send money overseas if you don’t have access to the appropriate bank account? Digital alternatives like PayPal and Payoneer provide a means. Or, you could simply use your preferred cryptocurrency, which is agnostic of geographical boundaries.
Encouraging Greater Financial Inclusion Through Digital Literacy
Getting to grips with the fundamentals of modern alternative finance, including crypto, can be tricky. Getting the best from these technologies means understanding them. That means knowing what a private key is, and what the best security practices are. There are fewer safeguards in place to protect the unwary, which means that the trader must take responsibility for their own money, even as it’s being moved around.
It’s fair to say that crypto isn’t for everyone. If you’re interested in it, it’s vital that you not only educate yourself, but that you treat it with caution. Don’t invest more than you can afford to lose, and keep your keys and seed phrases to yourself.
